Savings Account Interest Calculator per Day
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Reviewed by Calculator Editorial Team
Understand how much interest your savings account earns each day with our precise daily interest calculator. This tool helps you track your earnings over time and see how compounding affects your balance.
How to Use This Calculator
Using our savings account interest calculator per day is simple:
- Enter your initial deposit amount in the first field.
- Input the annual interest rate (APR) in the second field.
- Select whether the interest is simple or compound.
- Click the Calculate button to see your daily interest.
The calculator will display your daily interest amount and show a chart of your balance growth over time.
Formula Explained
The calculation for daily interest depends on whether you're using simple or compound interest:
Simple Interest Formula
Daily Interest = (Principal × Annual Rate × 1 day) / (365 days)
Where:
- Principal - Your initial deposit amount
- Annual Rate - The interest rate per year (as a decimal)
Compound Interest Formula
Daily Interest = Principal × (1 + Annual Rate/365)^1 - Principal
Where:
- Principal - Your initial deposit amount
- Annual Rate - The interest rate per year (as a decimal)
For compound interest, the daily rate is calculated by dividing the annual rate by 365 and then applying it to the principal for one day.
Worked Examples
Example 1: Simple Interest
If you deposit $1,000 at a 2% annual simple interest rate:
- Daily Interest = ($1,000 × 0.02 × 1) / 365 = $0.0548
Your account would earn approximately $0.05 per day.
Example 2: Compound Interest
If you deposit $1,000 at a 2% annual compound interest rate:
- Daily Interest = $1,000 × (1 + 0.02/365)^1 - $1,000 ≈ $0.0548
Your account would earn approximately $0.05 per day.
Note: For small interest rates, simple and compound interest calculations yield similar daily results. The difference becomes more noticeable over longer periods.
Frequently Asked Questions
How is daily interest calculated?
Daily interest is calculated by dividing the annual interest rate by 365 (for simple interest) or applying the daily compounding factor (for compound interest).
What's the difference between simple and compound interest?
Simple interest is calculated only on the original principal, while compound interest is calculated on the principal plus any accumulated interest from previous periods.
How often is interest calculated in a savings account?
Most savings accounts calculate interest daily, but the way it's applied (simple or compound) can vary by institution.
Can I use this calculator for any currency?
Yes, you can use any currency as long as you enter the correct interest rate for that currency.